Labor informality and homicides in Cali, a city oh high violence

Abstract

This paper estimates the effect of labor informality on homicides in Cali through an econometric analysis using instrumental variables. The results show a positive effect of labor informality (not being affiliated to the health system and not paying pension contributions) on homicides: On average, a one percentage point increase in the labor informality rate increases homicides by 4,2%, significant at the 1% level. These results are relevant for the study of the economics of crime in developing regions.